Tag Archives: dividends

Should we give shares to children and pay £5,000 dividends tax free?

The introduction of the £5,000 tax-free dividend allowance has tempted many family company shareholders to give shares to other family members so that they can be paid £5,000 a year tax-free. (Note that this allowance reduces to £2,000 from 6 April 2018). Such a strategy needs to be carefully structured as there can be Capital…